Newcastle United owners the Saudi Public Investment Fund are set to strike a deal worth £18m to tighten their grip on the club following Amanda Staveley’s exit.
Yesterday, news broke that Staveley, who served as the public face of PIF’s £305 million buyout in October 2021, would be leaving the team along with Mehrdad Ghodoussi, her husband and business partner.
Staveley featured prominently in last year’s Amazon documentary about the club’s battle with Profit and Sustainability Rules (formerly Financial Fair Play, or FFP). The struggle to unlock the near-limitless wealth of PIF has characterised her time at St James’ Park. As well a being on the board of directors, Staveley also owns a 5.7 per cent stake in the club. Her equity is now central to the question of what will happen behind the scenes following her exit.
Amanda Staveley to sell Newcastle stake
The Athletic has claimed that Staveley and Ghodoussi intend to sell their ownership interest in the team.
But that is all there is to the specifics. It is currently unknown if minority shareholders Reuben Brothers or PIF will purchase the 5.7% holding.
In exchange for mediating the buyout between PIF, the Reuben Brothers, and former Newcastle owner Mike Ashley, Staveley originally accepted a 10% interest.
This was then reduced to 6% and, at last, to 5.7%, as verified by a Companies House file made earlier this year.
Relative to the £305 million buyout price, a 5.7% interest would be valued at £17.4 million.
Staveley and Ghodoussi may truly seek a much bigger amount, unless there is a stipulation stating that all intra-group share exchanges must be completed at a specific price.
TBR Analysis: Why is Staveley leaving Newcastle?
A few weeks ago, Staveley addressed speculation that she was stepping down as a result of a reorganization at Companies House by saying that the changes were only administrative and that she was dedicated to the position long-term.
Which party was responsible for this significant change in that viewpoint is unknown.
Most notably, she was recently a party to a High Court bankruptcy action about an alleged £35 million unpaid debt from 2008.
Considering how successful Newcastle has been under her leadership—both on the field and in the commercial department—it is difficult to believe that PIF would be eager to see her go.
She did, however, come under fire for the way they handled the frantic scramble to achieve the Premier League’s PSR criteria by the deadline of June 30.
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